Jahrespressekonferenz Annual Press Conference February 6, 2019€¦ · February 6, 2019 Annual Press Conference. Contents Highlights 2018. Divisional Information. Group financials.

Daimler AG

JahrespressekonferenzAnnual Press ConferenceFebruary 6, 2019

Dr. Dieter ZetscheChairman of the Board of Management of Daimler AGHead of Mercedes-Benz Cars

February 6, 2019

Annual Press Conference

Contents

Highlights 2018Divisional InformationGroup financialsOutlookGuidance

+0.4%Mercedes-Benz CarsGroup sales Mercedes-Benz and smart in million units

2.372.38

0

0,5

1

1,5

2

2017 2018

Mercedes-Benz CarsBusiness challenges and our answers Withstanding headwinds

Changeover to WLTP- Number of vehicles in stock back at normal level- Certification completed by the due date September 1, 2018

Initiated measures to prevent air pollution - Software updates- Financial support for hardware retrofits by third parties- Exchange program- 90% of today’s Mercedes-Benz passenger cars portfolio in

Europe certified according to 6d or 6d TEMP

Global tariff dispute- Preparing for a range of scenarios- Advocating for free markets

Mercedes-Benz VansGroup sales in thousand units +5%

401 421

0

100

200

300

400

2017 2018

Daimler TrucksGroup sales in thousand units +10%

471517

0

200

400

2017 2018

Daimler BusesGroup sales in thousand units

29 31

0

10

20

30

2017 2018

+8%

Daimler Financial ServicesContract volume in billion euros

154.1

0

50

100

150

2017 2018

+10%139.9

18

31

0

10

20

30

2017 2018

+75%Mobility Services Number of customers in million

Key financialsDaimler 2018

2017 2018

-22%

EBIT in billion euros*

14.3

11.1

2017 2018

-11%

Dividend proposedin euros

3.653.25

*The 2017 figures have been adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)

2017 2018

+2%

Revenuein billion euros*

164.2 167.4

Bodo UebberMember of the Board of ManagementFinance & Controlling and Daimler Financial Services

February 6, 2019


Contents


Mercedes-Benz CarsNew sales record in a challenging environment

2017 2018

+0.4%

2017 2018

-1%

2017 2018

-18%2,374 2,383 94.4* 93.1 8,843*

7,216

*Adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)

Unit salesin thousand units

Revenuein billion euros

EBITin million euros

8,843*

7,216

EBIT2017

EBIT2018

Mercedes-Benz CarsEBIT in million euros / Return on sales in %

Remeasurement of the investment in Aston MartinExpenses for voluntary service activities and expenses for a specific vehicle recall in 2017

Weaker net pricingForeign exchange ratesExpenditure for new technologies and future productsHigher expenses for raw materialGovernmental proceedings and measures related to diesel vehiclesRemeasurement of the equity investment in THERE Holding B.V. in 2017

+

-

-1,6279.4%

7.8%

+

-----


Mercedes-Benz VansContinued growth of business volume

2017 2018

+5%

2017 2018

+4%

2017 2018

-73%401 421


13.2* 13.6 1,147*

312




1,147*

312

EBIT2017

EBIT2018

Mercedes-Benz VansEBIT in million euros / Return on sales in %

Higher unit sales

Higher expenses for new technologies and future productsImpacts from Sprinter model changeGovernmental proceedings and measures related to diesel vehicles and delivery delaysRemeasurement of assets in connection with production capacities

-

- 8358.7%

2.3%

+

---


Daimler TrucksStrong business development based on attractive products and rising demand in core markets

2017 2018

+10%

2017 2018

+7%

2017 2018

+16 %471

51735.8*

38.32,383*

2,753





2,383*

2,753

EBIT2017

EBIT2018

Daimler TrucksEBIT in million euros / Return on sales in %

Higher unit sales especially in the NAFTA regionEfficiency enhancementsExpenses for fixed cost optimization in 2017

Higher costs, mainly related to supply chain constraints and raw materialForeign exchange ratesSale of real estate at the Kawasaki site in 2017

-

+3706.7%

7.2%

+

--

++


Daimler BusesVery heterogeneous business development in our core regions

2017 2018

+8%

2017 2018

+0%

2017 2018

-6%28.7

30.94.5* 4.5 281* 265





281*265

EBIT2017

EBIT2018

Daimler BusesEBIT in million euros / Return on sales in %

Higher unit sales

Product mixInflation-related cost increases

-

-166.2%

5.9%

-

+


Daimler Financial ServicesFurther business growth EBIT impacted by settlement of Toll Collect arbitration proceedings

2017 2018

+2%

12/31/17 12/31/18

+10%

2017 2018

-30%

New businessin billion euros

Contract volumein billion euros


70.7 71.9 139.9154.1

1,970

1,384

12/31/17 12/31/18

Daimler Financial ServicesCreating one of the leading providers of urban mobility

31 million Daimler mobility service customers

at the end of 2018

Mobility joint ventures with BMW including ride hailing, car sharing, parking,

on-demand multimodal mobility and charging

1,970

1,384

EBIT2017

EBIT2018

Daimler Financial ServicesEBIT in million euros / Return on equity in %

Higher contract volume

Settlement of the Toll Collect arbitration proceedingsHigher interest-rate levelCost of risk in some markets

-

- 58617.7%

11.1%

+

--

Contents


Daimler: Key figuresin billion euros

2017 2018

Unit sales (in thousands of units) 3,274 3,352Revenue* 164.2 167.4EBIT* 14.3 11.1Net profit* 10.6 7.6Free cash flow of the industrial business 2.0 2.9Earnings per share (in euros)* 9.61 6.78Dividend per share (in euros) 3.65 3.25

*The 2017 figures have been adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)

Continued high level of net industrial liquidityin billion euros

Free cash flow industrial businessFY 2018: 2.9 billion euros

Net industrial liquidity

12/31/2017

Earnings andother cash flow

impact

Working capital impact

Other(mainly FX

effects)

Net industrial liquidity

12/31/2018

Dividend payment

Daimler AG

M&A effects

-2.8

16.3+0.716.6

+5.7-3.9+0.0

2.45

3.25 3.253.65

3.25

2014 2015 2016 2017 2018 proposed

Development of dividend per sharein euros

Investment to remain at a high level as a basis for profitable growth and development of future mobilityin billion euros

2014 2015 2016 2017 2018 Plan 2019/20(average p.a.)

13.5

16.416.6

10.511.6

15.5

8.7

6.7

9.1

7.5

9.2

7.3

Research and development expenditure

Investment inproperty, plantand equipment

Financial & Mobility Services

DAIMLER AGStrategy, Governance & Services

Trucks & BusesDAIMLER TRUCK AG

Cars & VansMERCEDES-BENZ AG DAIMLER MOBILITY AG

DecisionAnnual Shareholders‘ Meeting

May2019

DecisionBoard of Management and Supervisory Board

July2018

Planned startin new corporate structure

November 2019

Project Future: Our new corporate structureNext steps

Dr. Dieter ZetscheChairman of the Board of Management of Daimler AGHead of Mercedes-Benz Cars

February 6, 2019


Contents


Connectivity: Making our cars even more intelligent

Introduction of gesture control functions

Ability to solve even more complex issues

Further improvement of voice control system

Testing Level 4 on public roads in Beijing

Pioneering an automated car service in San José

Autonomous driving: Taking it up to the next level

New unit to work on autonomous vans

Partially-automated trucks in serial production

Highly automated trucks on the road within a decade

Automated driving: Leading the change in logistics

Merging our services with BMW’s

Developing premium ride-hailing for China

Shared: Teaming up for mobility services

E-mobility: Entering a new era

Offering 130 electrified Mercedes-Benz Cars variants by 2022

Preparing for EQC’s serial production in Bremen and Beijing

Combined power consumption: 22.2 kWh/100 km; combined CO₂ emissions: 0 g/km, provisional figures.

Electrifying vans, trucks and buses

Buying battery cells for 20 billion euros

E-mobility: Flipping the switch

Purpose: First move the world

Contents


Sales outlookfor 2019

Mercedes-Benz CarsSlightly higher unit sales

Daimler TrucksSlightly higher unit sales

Mercedes-Benz VansSignificantly higher unit sales

Daimler BusesSignificantly higher unit sales

Return on sales outlookfor 2019

EBIT Daimler groupSlightly above the prior-year level

Mercedes-Benz CarsReturn on sales in the range of 6 to 8%

Daimler TrucksReturn on sales in the range of 7 to 9%

Mercedes-Benz VansReturn on sales in the range of 5 to 7%

Daimler BusesReturn on sales in the range of 5 to 7%

Daimler Financial ServicesReturn on equity in the range of 17 to 19%*

*Including significant one-time valuation and earnings effects from the combination of the mobility services business with BMW Group.

2019 2021

8%

10%

Mercedes-Benz Cars & Vans

DaimlerTrucks & Buses

Sustainable return to target RoS range

8% over the cycle

Improving future profits to invest in future technologies and sustainably achieve our target margins

2019 2021

Sustainable achievement of target RoS level and exploitation of additional potential

6%

8%9%

7%

Setting the course for the next decade

Daimler AG

JahrespressekonferenzAnnual Press ConferenceFebruary 6, 2019

Appendix

Financial and balance sheet figures support our financial strength and A-ratingin billion euros

Daimler Group Dec. 31, 2017 Dec. 31, 2018

Equity ratio 24.0% 22.2%

Gross liquidity 22.1 25.4

Funded status of pension obligations -4.5 -6.2

Funding ratio 86% 80%

Industrial business

Equity ratio 46.4% 42.8%

Net liquidity 16.6 16.3

Free cash flow 2.0 2.9

Financial flexibility over a 12-month periodin billion euros

The financial flexibility provides support to mitigate risk and volatility through a balanced mix of funding instruments and clear principles

Daimler follows a financial management to safeguard our A-rating and thus our attractive refinancing conditions

Available or short-term accessible liquidity is higher than the total maturities over the next 12 months

A high financial flexibility is a key support to our A-Rating

The current liquidity position reflects the volatile market environment, the currently required high investments for our future business model and the required financial flexibility for our business

Available oraccessible

liquidity

57.4

49.1

Maturitiesover next

12 months

Other

Bank loans

Bonds

Accountdeposits

Commercialpaper

Creditfacility

LiquidityFinancialServices

Liquidityindustrialbusiness

ABSpotential

Sales development of all automotive divisionsin thousand units

2017 2018 % change

Daimler Group 3,273.9 3,352.4 +2

of which

Mercedes-Benz Cars 2,373.5 2,382.8 +0

Daimler Trucks 470.7 517.3 +10

Mercedes-Benz Vans 401.0 421.4 +5

Daimler Buses 28.7 30.9 +8

Revenue by divisionin billion euros

2017* 2018 % change

Daimler Group 164.2 167.4 +2

of which

Mercedes-Benz Cars 94.4 93.1 -1

Daimler Trucks 35.8 38.3 +7

Mercedes-Benz Vans 13.2 13.6 +4

Daimler Buses 4.5 4.5 +0

Daimler Financial Services 24.5** 26.3 +7

Contract volume of Daimler Financial Services*** 139.9 154.1 +10

* adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)** At the Daimler Financial Services segment, the Group’s internal revenue and cost of sales have been adjusted by the same amount. These adjustments have been fully eliminated in the reconciliation.*** figures as of December 31, 2017 and December 31, 2018

Revenue by regionin billion euros

2017* 2018 % change

Daimler Group 164.2 167.4 +2

of which

Europe 68.3 68.5 +0

of which Germany 24.3 24.8 +2

NAFTA 46.5 48.0 +3

of which United States 40.1 41.2 +3

Asia 39.1 40.6 +4

of which China** 18.8 19.8 +5

Other markets 10.2 10.3 +1

* adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)** excluding revenue of not fully consolidated companies

Group EBIT in 2018in million euros

-2,236

-93 11,132-168

14,348*-774+644

• Cars -277• Trucks +841• Vans +57• Buses +23

• Cars -527• Trucks -270• Vans -10• Buses +33

• Cars -1,176• Trucks -106• Vans -882• Buses -72

-132

Actual2017

Volume/Structure/Net pricing

Foreignexchange

rates

Other costchanges

Reconciliation Actual2018

Financial Services

Disclosed items2017

Disclosed items2018

-457

of which:• Cars:

RemeasurementAston Martin +111

• DFS:Toll Collect arbitration -418

• Reconciliation:ImpairmentBAIC Motor -150

of which:• Cars:

Voluntary service activities and specific vehicle recall +425New investors in HERE -183

• Trucks:Sale of realestate in Japan -267Fixed cost optimization +172

• Reconciliation:Impairment reversal BAIC Motor -240

* adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)

Group EBIT in Q4 2018in million euros

-1,115

-174 2,669-38

3,421*

-122+787

• Cars +509• Trucks +185• Vans +58• Buses +35

• Cars -121• Trucks -16• Vans -9• Buses +24

• Cars -777• Trucks -96• Vans -215• Buses -27

of which:• Cars:

RemeasurementAston Martin -74Voluntary service activities and specific vehicle recall** -28

• Trucks:Fixed cost optimization** +78

• Reconciliation:ImpairmentBAIC Motor -150

-90

ActualQ4 2017

Volume/Structure/Net pricing

Foreignexchange

rates

Other costchanges

Reconciliation ActualQ4 2018

Financial Services

Disclosed items

* adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)** in Q4 2017

EBIT by divisionEBIT in million euros; RoS/RoE in %

2017* 2018EBIT RoS/RoE** EBIT RoS/RoE**

Daimler Group 14,348 8.9 11,132 6.9

of which

Mercedes-Benz Cars 8,843 9.4 7,216 7.8

Daimler Trucks 2,383 6.7 2,753 7.2

Mercedes-Benz Vans 1,147 8.7 312 2.3

Daimler Buses 281 6.2 265 5.9

Daimler Financial Services 1,970 17.7 1,384 11.1

Reconciliation -276 – -798 –

* adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)** Return on sales for automotive business, return on equity for Daimler Financial Services; Daimler Group excluding Daimler Financial Services

EBIT in Q4 2018EBIT in million euros; RoS/RoE in %

Q4 2017* Q4 2018EBIT RoS/RoE** EBIT RoS/RoE**

Daimler Group 3,421 8.1 2,669 5.8

of which

Mercedes-Benz Cars 2,375 9.5 1,883 7.3

Daimler Trucks 559 5.8 710 6.8

Mercedes-Benz Vans 247 6.6 81 2.0

Daimler Buses 99 7.3 132 8.6

Daimler Financial Services 416 14.3 378 12.0

Reconciliation -275 – -515 –

* adjusted based on new IFRS 15 standards including cost of hedging (IFRS 9)** Return on sales for automotive business, return on equity for Daimler Financial Services; Daimler Group excluding Daimler Financial Services

Assumptions for automotive markets in 2019

* including light-duty trucks

Car markets

GlobalEurope

Medium- and heavy-duty truck

markets

NAFTA region

EU30

Japan*

Brazil

EU30

Bus marketsEU30

Brazil

around the prior-year level


USA

Van markets

Indonesia*

China around the prior-year level

USA


slight decrease

significant growth

slight growth

slight growth

slight growth


slight decrease

stable development


Capital expenditure / Research and developmentin billion euros

Actual2017

Actual2018

6.7

Plan2019/2020

(average p.a.)

7.5 7.3

Actual2017

Actual2018

8.7 9.1 9.2

Plan2019/2020

(average p.a.)

Investment in property, plant and equipment


Capital expenditure / Research and developmentin billion euros

Investment in property, plant and equipment


Actual2017

Actual2018

Plan*2019-2020

Actual2017

Actual2018

Plan*2019-2020

Daimler Group 6.7 7.5 7.3 8.7 9.1 9.2

of which

Mercedes-Benz Cars 4.8 5.7 5.7 6.6 7.0 7.0

Daimler Trucks 1.0 1.1 1.1 1.3 1.3 1.4

Mercedes-Benz Vans 0.7 0.5 0.2 0.6 0.7 0.5

Daimler Buses 0.1 0.1 0.1 0.2 0.2 0.2

Daimler Financial Services 0.04 0.06 0.05 – – –

* average p.a.

* incl. GLA

2017

2,374 2,383

2018

409

478

434

84

19

420

493

398

79

25smart

E-Class

C-Class

A-/B-Class

S-Class

Sports Cars130136

SUVs*823 829

The EQC – power consumption combined: 22.2 kWh/100 km; CO2 emissions combined: 0 g/km, preliminary figures (Information on electricity consumption and CO2 emissions is provisional and has been determined by an external technical service and is non-binding. Range figures are also provisional and non-binding. EU type approval and a certificate of conformity with official figures are not yet available. The figures given above may deviate from the official figures.

Mercedes-Benz Carsin thousand units

New sales record

2017

2,374 2,383

2018

678

327

324

659

619

338

320

694

Rest of world

Germany

United States

China

Europeexcl. Germany

403 395

Mercedes-Benz Carsin thousand units

Globally balanced sales structure

Mercedes-Benz Cars in China: strong sales growth with increasing share of locally produced vehiclesin thousand units

239293

400

488

678locally producedimported

2018201520142013 2016

123

116

147

146

150

250

171

317

193

485

619

2017

196

423

* European Union, Switzerland and Norway

2017

471517

2018

85

190

38

165

82

165

31

149

Rest of world

Latin America

NAFTA region

EU30*

Asia

4439

Daimler Trucksin thousand units

Sales increase by 10%


2017

501

589

2018

92

256

35

163

83

180

29

162

Rest of world

Latin America

NAFTA region

EU30*

Asia47

43

Daimler Trucksin thousand units

Incoming orders increase primarily driven by NAFTA region

2017

401.0421.4

201826.3

63.9

108.3

206.3

26.1

59.3

111.8

200.5

Vito

V-Class

Citan

Sprinter

X-Class3.3 16.7

Mercedes-Benz Vansin thousand units


2017

28.730.9

2018

9.3

3.2

8.8

4.9

8.7

3.4

7.2

5.5

Rest of world

Brazil

Mexico

EU30*

Latin America(excl. Brazil and Mexico)

3.94.7


Daimler Busesin thousand units


12/31/2017

139.9154.1

12/31/2018

26.2

38.0

56.1

33.7

24.1

35.6

50.7

29.4

Americas

Europe (excl. Germany)

Germany

Africa & Asia-Pacific

Daimler Financial Servicesin billion euros

Further increase in contract volume to 154.1 billion euros (+10%)

Daimler Mobility Services: ongoing business expansion

Customers in millions

Cities

Combined change*

+75%

+63%

3.6

25

6.2

20**

YTD 12/18

Interactions in millions

+61% 25.3 27.7

21.3

>110

132.9

Ride-Hailing Group

* car2go, moovel and Ride-Hailing Group (incl. mytaxi, Beat since 02/17, Clever Taxi since 06/17 and Chauffeur Privé since 03/18) combined, 12/18 (YTD) vs. 12/17 (YTD)** Number of cities with ticketing capability of public transit

Daimler Financial Services: net credit losses* at low level

* as a percentage of portfolio, subject to credit risk

0,69% 0,68%

0,50%0,61%

0,36%

0,51%

0,89%0,83%

0,43%0,34% 0,37%

0,31%0,24%

0,31%0,26%

0.21%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20172015 2016 2018

Disclaimer

This document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” ”can,” “could,” “plan,” “project,” “should” and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates and tariff regulations; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilize our production capacities; price increases for fuel or raw materials; disruption of production due to shortages of materials, labor strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending government investigations or of investigations requested by governments and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading “Risk and Opportunity Report” in the current Annual Report. If any of these risks and uncertainties materializes or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.

Jahrespressekonferenz Annual Press Conference February 6, 2019€¦ · February 6, 2019 Annual Press Conference. Contents Highlights 2018. Divisional Information. Group financials.

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